liability
The company's biggest liability is its unpaid debts.
The company's most significant legal or financial responsibility is its unpaid debts.
The state of being legally responsible for something, especially debts or damages.
The court ruled that the driver had liability for the accident.
The court determined the driver was legally responsible for the accident.
The business failed due to high liabilities.
The business collapsed because of excessive debts or financial obligations.
In law, 'liability' refers to legal responsibility for one's actions or obligations.
A person or thing whose presence or behavior is likely to cause problems.
That unreliable employee is a liability to the team.
That unreliable employee is likely to cause problems for the team.
In everyday language, 'liability' can describe someone or something that is a burden.
An amount of money that a company owes.
The company's liabilities exceeded its assets.
The company owed more money than it owned.
In accounting, 'liabilities' are recorded on the balance sheet as obligations.
Collocations
Related Phrases
Pro Tip
Avoid confusion with 'responsibility'
'Liability' often implies a negative consequence or obligation, while 'responsibility' can be neutral or positive. Compare: 'The manager has responsibility for the team' (neutral) vs. 'The manager is a liability to the team' (negative).
Gold Rule
Liabilities vs. Assets
In finance, liabilities are what a company owes (debts), while assets are what it owns. A healthy company has more assets than liabilities.
Legal Liability
In law, liability arises from actions, contracts, or statutes. It can be civil (e.g., breach of contract) or criminal (e.g., negligence).
Word Origin
From Middle English 'liabilite', from Old French 'liabilité', from Latin 'liabilis' (liable), from 'ligare' (to bind). The legal sense dates back to the 14th century.
Usage Notes
In legal and financial contexts, 'liability' is often pluralized as 'liabilities'. The word can describe both the state of being responsible and the thing (e.g., debt) that creates that responsibility.